GDP For Eurozone Countries Down Up To 7.9 %, Only China Grows and Defies Pandemic
- Euro area GDP forecast to fall by 7.9%
- Only China shows GDP growth of 1.8%
- Germany’s GDP also declines by up to 5.4%, although less than in neighbouring countries
- Chinese stock index with highest price gains
- Professional fund managers at the end of 2019 were forecasting top equity performance for European securities
Grossed domestic product (GDP) in the euro zone could fall by up to 7.9% year on year. As a new infographic from Kryptoszene.de shows, only China is expected to see an increase in GDP. A glance at the price development of shares in China also shows that The Middle Kingdom appears to be emerging relatively unscathed from the corona crisis.
As the infographics show, the OECD estimates a decline of 5.4% in Germany’s GDP. Countries such as France and Great Britain have been hit much harder, with expected GDP declines of around 9.5% and 10.1% respectively. GDP in China, however, is forecast to grow by 1.8%.
The study also shows that developments on the stock exchange floor vary considerably from one country to another. The Chinese SCI index has risen by 10.5% over the last 365 days, and the DAX has also recorded positive results with an increase of 6.7%.
The situation is markedly different in Great Britain and France – countries where the decline in GDP is expected to be particularly severe. The British FTSE 100 lost 17.3% in the year under review. The CAC, comprising listed French companies, lost 12.6% in value. At the end of 2019, 42% of professional fund managers still expected European equities to outperform the market.
“Although the pandemic is hitting the economy hard, investors remain unfazed,” observes Kryptoszene analyst Raphael Lulay. “On the one hand, the share prices of numerous companies are once again slowly starting to climb to new heights – while on the other, search terms such as ‘economic crisis’ are less in demand on Google than ever before”.